How we collect our payments, this is one of the most common questions we get asked by clients. That's where payment-processing systems come in. They're third-party products that do away with the need for a merchant banking account and that host secure transactions on their own servers.

The best-known systems are person-to-person services such as PayPal (ww.paypal.com) and Nochex (www nochex.co.uk). They're very straightforward: all you or your customers need is a bank account and a valid email address. As an online business, you'll pay a standard fee plus a percentage of every payment made to you. Most systems offer merchant users a version of their core product with some extra bells and whistles. PayPal, for example, offers integrated shop-fronts, cut-and-paste code and extra security. There are no set-up costs and price per transaction starts at 3.4 per cent, going down as your turnover increases.

Alternatively you may want to bypass the need for customers to sign up with a third-party system. That's where credit card gateways come in. You're probably familiar with WorldPay (http://www.wortdpay co.uk) and Protx (http://www.protx.com). These services provide you with an interface to their merchant bank account, enabling you to process credit card transactions directly. Expect to pay more for this convenience though: a monthly subscription fee at least. Protx charges £20 a month for small business accounts; WorldPay pricing starts at £30 a month, with a further set-up fee of £200, plus additional rates for individual transactions.